The end result of State Bans of Payday Lending on customer Credit Delinquencies

Abstract: “The financial obligation trap theory implicates loans that are payday a factor exacerbating customers’ economic distress. Consequently, limiting use of pay day loans could be likely to reduce delinquencies on conventional credit items. We try this implication of this theory by analyzing delinquencies on revolving, retail, and installment credit in Georgia, new york, and Oregon. These states paid off option of pay day loans by either banning them outright or capping the charges charged by payday lenders at a level that is low.

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